JPMorgan has lowered its bitcoin production cost estimate to 18,000 from $21,000 following recent revisions to the CBECI methodology.
The move comes a week after the Cambridge Bitcoin Electricity Consumption Index methodology was revised.Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.JPMorgan has lowered its bitcoin production cost estimate following recent revisions to the Cambridge Bitcoin Electricity Consumption Index methodology.
"The current bitcoin production cost falls to around $18,000 with the new methodology vs. $21,000 with the old methodology," JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report on Wednesday. Accordingly, electricity price changes will now have a smaller effect on bitcoin mining costs, the analysts noted."We had previously calculated that each one cent per kWh [kilowatt hour] change in the electricity cost induces a $4,300 change in the bitcoin production cost.
will cut the rewards miners receive in half, and any changes in electricity costs will have a larger impact on their overall expenses, making cost management even more critical for miners., especially given the high sensitivity of the bitcoin production cost to electricity costs.the methodology to enhance the accuracy and reliability of the index, which tracks and estimates the electricity consumption of the Bitcoin network.
"In conclusion, we conducted this analysis to test our hypothesis that increases in network hash rate can likely be attributed to more recently released mining hardware," the Cambridge Centre for Alternative Finance said."This hypothesis was based on U.S. import data, and we sought additional evidence to validate it."
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ronald Reagan Library welcomes 'generous and exciting' $21 million gift from T. Boone Pickens FoundationThe T. Boone Pickens Foundation has donated $21 million to the Ronald Reagan Presidential Library and Museum, recognizing the businessman's faith in the president.
Read more »
Hochschild revises down production guidance for FY23London-listed precious metals producer Hochschild Mining has lowered its production guidance and increased its cost forecast for the year, citing environmental approval delays on the Immaculada project, in Peru, and accelerated mine development costs at the San Jose project, in Argentina. The company initially expected to produce between 301 000 and 314 000 gold-equivalent ounces (GEOs) for 2023, but has decreased that range to between 289 000 and 303 000 GEOs.
Read more »
Saudi Arabia as the new Switzerland? A new world order makes markets riskier, says JPMorgan strategistJPMorgan strategist says he won't turn bullish until rates fall and geopolitical risks recede.
Read more »
Investor allocation to gold is at its highest level in 11 years, JPMorgan strategist saysInvestor allocation to gold stands at its highest level in 11 years, according to an analysis by a J.P. Morgan strategist.
Read more »
JPMorgan says interest in solar systems for homes remains high so buy these stocks for the long termThe firm has some favorite plays for long-term investors.
Read more »
Brightstar prices Menzies and Laverton restartA restart study into the combined Menzies and Laverton gold projects, in Western Australia, has estimated that a capital investment of around A$22-million would be required to initiate production. ASX-listed Brightstar Resources said on Wednesday that the project would target an initial 322 617 oz of gold over a near eight-year mine life, with an average of around 45 000 oz/y recovered in the first five years of operation.
Read more »